A large price cut by Intel is raising concerns of a price war that could squeeze the profits of chip-makers. Intel employs more than 3,500 people in Leixlip in Co Kildare.
According to the
Wall Street Journal
online edition Intel - which has been losing market share to rival Advanced Micro Devices - will have cut prices by 50 per cent to 60 per cent by the end of the month on some of its highest-performing chips.
It had been expected to reduce prices by about 20 per cent.
Market conditions in the flagging semiconductor industry are pushing both companies. Intel has declined to specify the size of the pricing change which was reported by analysts last week and confirmed by other people familiar with Intel's plans.
AMD has not announced price cuts but is known for selling chips below Intel's prices charged. Intel is scheduled to report first-quarter earnings later today.
Shares of Intel closed down $1.82 at $26.30 yesterday - off a 52-week high of $75.81 and just above a year low of $22.25 per share.